Analyst Reports Call Options Prevailing Across All Expirations in Ether Market
Crypto News– With renewed optimism surrounding the potential approval of a spot ether exchange-traded fund (ETF), the cost of ether call options has surpassed that of put options across all expiration dates, signaling a bullish sentiment in the market, according to an analyst.
Luuk Strijers, the CEO of Deribit, highlighted the negative put-minus-call skew across all expiration dates, which is further intensifying beyond the end-of-June expiry, indicating a notably bullish signal. He mentioned that the basis has also risen to approximately 14% annualized, serving as another bullish indicator.
This analysis implies that traders are more inclined to invest in call options over put options, particularly for options expiring at the end of June and beyond. This preference suggests a bullish market outlook, reflecting traders’ anticipation of a rise in ether prices in the future. Consequently, they are less interested in paying higher premiums for downside protection through put options.
Increase in Trading Volume of Options
Following the unexpected request from the U.S. Securities and Exchange Commission for filing amendments, which sparked renewed optimism regarding the potential approval of spot ether ETFs this week, Deribit, a derivatives exchange, witnessed a remarkable surge in trading volumes.
Luuk Strijers, the CEO of Deribit, noted a substantial increase in trading volumes and volatility for ether options and futures. He mentioned, In fact, we saw an almost unprecedented trading volume of $12.5 billion notional in the last 24 hours.
Strijers further explained that this surge reflects a heightened level of market activity and interest as traders and investors position themselves to leverage the potential approval of spot ether ETFs this week.
FAQs
What are call options and put options in the context of the cryptocurrency market?
Call options give the holder the right, but not the obligation, to buy an asset at a specified price (strike price) within a certain time frame (expiration date). Put options, on the other hand, give the holder the right, but not the obligation, to sell an asset at a specified price within a certain time frame.
Why is it important that call options are dominating the ether market across all expirations?
It suggests that traders are more optimistic about the future price of ether, as they are willing to pay higher premiums for call options, which profit from price increases. This could indicate a bullish market sentiment and anticipation of ether’s price appreciation.
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